05/07/2026
8 Reasons To Consider an Umbrella Policy for Your Business!
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🚨 As a business owner, you need to prepare for the worst. A commercial umbrella policy is insurance for your insurance. When a claim or series of claims hits your business, umbrella coverage can be a lifesaver.
Umbrella insurance provides additional liability coverage for you and your assets if you face a devastating accident or lawsuit.
🔹 Extended liability coverage
Without an umbrella policy, you might be on the hook for legal fees, medical bills and damages that exceed the limits of your current coverage.
For example, say a company truck is responsible for a 10-car pileup on a wet road. The damages total $900,000. You have a commercial auto policy with $300,000 in liability coverage and a commercial umbrella with $1 million in coverage. Your commercial auto policy would pay the first $300,000, and your umbrella would kick in to pay the remaining $600,000.
Umbrella insurance doesn't just increase your coverage; it can also broaden your coverage. For example, if your auto liability policy covers accidents in a specific geographic area, an umbrella policy could expand the coverage territory.
Your commercial umbrella policy may have general liability, commercial auto and workers’ compensation policies under it.
🔹 Scope of coverage
Business insurance policies that commercial umbrella insurance typically broadens include:
✔ Commercial general liability
✔ Commercial auto
✔ Workers’ compensation
✔ Product liability
Note that commercial umbrella insurance only covers claims if you have the appropriate underlying policy to start with; it can't provide brand-new coverage. For example, if you don’t have an existing commercial general liability (CGL) policy, your umbrella insurance won’t cover CGL claims.
Additionally, commercial umbrella insurance commonly excludes certain things, like:
❌ Commercial property insurance
❌ Employee discrimination lawsuits
❌ Errors and omissions (E&O) and professional liability insurance
❌ Claims already covered by underlying policies
🔹 Why you should get umbrella insurance
Here are eight reasons to consider a commercial umbrella policy for your business:
• Your employees are at risk of getting injured on the job.
• Your business is open to the public.
• Your business does work on clients’ property.
• Clients require high coverage limits.
• Employees use their own cars for business.
• It costs less than increasing limits on all policies.
• It may provide discounts on underlying policies.
• It covers gaps in some liability options.
📞 Contact us. We can help you assess your risk exposure. If you think your business is vulnerable, it’s better to be on the safe side than risk shouldering the cost of a heavy lawsuit.
This content is for informational purposes only and not for the purpose of providing, financial, medical or legal advice. You should contact your attorney, doctor, broker or advisor to obtain advice with respect to any particular issue or problem.
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